Intr oduction
HEPCO has worked with a tight power supply since the successive shutdowns of
reactors at its Tomari Nuclear Power Station (previously one of the company’ s main
power sources) following the Great East Japan Earthquake of March 2011.
Custom-ers were asked to reduce power consumption by at least six percent during the winter
of 2013, following the summer and winter of 2012. HEPCO also took a range of
initia-tives, including the deferment of equipment maintenance periods, increased output
levels at thermal power plants and early recovery from equipment problems. These
measures helped to address the pressing power supply issues, and the efforts of
everybody who contributed are very much appreciated. Toward the restart of the idle
reactors at the Tomari Nuclear Power Station, HEPCO is making ever y effort to
make sure there are no issues with reviews based on the new regulator y
require-ments set by Japan’ s Nuclear Regulation Authority. Given the current status of the
reviews, however, the restart of the reactors is expected to be significantly later than
originally specified in the plan underlying the company’ s September 2013 electricity
rate raise. Although the tight supply situation is expected to continue until the restart,
HEPCO remains committed to its measures to ensure a stable power supply.
In the meantime, the extended shutdown of the Tomari Nuclear Power Station has
drastically increased thermal fuel expenses and other costs, which have continued to
adversely affect the group’ s balance of payments and financial performance. To
pre-vent the company from falling into negative net worth, HEPCO reversed the entire
reserve for water level fluctuation and issued preferred stock in FY 2015. As part of
its efforts to improve the bottom line, the group is steadily implementing initiatives to
enhance management efficiency. These include measures to reduce the costs of labor,
equipment procurement and other overheads, and deferral of equipment replacement/
upgrade and repair work in cases where such postponement will not significantly
increase the risk of power supply disruption.
However, cost reduction alone cannot rectify the structure of the corporate deficit
September 2014
Hokkaido Electric Power Co., Inc.
caused by significant increases in fuel expenses and other costs. If the situation had
continued, it would have made it difficult to fund fuel procurement and equipment
maintenance, thereby resulting in power supply disruption. Accordingly, it was
neces-sary to ask the government for approval to increase electricity rates on July 31, 2014.
The company is aware of the further burden this has placed on its customers
follow-ing the last rate increase, and will continue its unremittfollow-ing efforts to reduce costs
across all areas of expenditure and strive earnestly toward the restart of the Tomari
nuclear reactors. HEPCO’ s management hopes to be able to reduce electricity rates
once the commercial operation of the reactors is resumed.
Despite the challenging business environment, HEPCO is steadily proceeding with
steps to maintain a stable power supply for the future of Hokkaido. These include the
introduction of new power sources, as evidenced by the construction of the
Ishikari-wan Shinko Power Station (HEPCO’s first liquefied natural gas (LNG)-fuelled thermal
power facility) and the reinforcement of the Hokkaido-Honshu (Kitahon) HVDC Link.
In consideration of today’ s increasing use of renewable energy (particularly that
produced by photovoltaic power generation), HEPCO also plans to work toward the
broader introduction of such energy through ongoing efforts to ensure quality. This
includes the assessment of impacts on power systems and participation in national
verification tests.
HEPCO is committed to its mission of providing a stable power supply into the
future. To this end, the company will continue its earnest efforts to ensure the safety
of the Tomari Nuclear Power Station and bring its idle reactors back online as early as
possible. The group also remains committed to its extensive efforts to meet the
expectations of customers and shareholders.
Financial Highlights
Consolidated Basis
Hokkaido Electric Power Co., Inc. and Consolidated Subsidiaries Millions of yen
Note: The U.S. dollar amounts represented here are the results of converting yen values at a rate of ¥103 = US$1 (the prevailing rate on March 31, 2014), and are included solely for convenience.
FY2014 FY2013 FY2014
Thousands of U.S. dollars (Note)
U.S. dollars (Note) Yen ¥ ¥ ¥ ¥ ¥ ¥ ¥
603,032
27,308
630,340
(62,972)
1,782,776
146,731
(306.34)
¥ ¥ ¥ ¥ ¥ ¥ ¥557,792
25,197
582,990
(132,819)
1,660,740
190,403
(646.08)
$ $ $ $ $ $ $5,854,679
265,126
6,119,805
(611,378)
17,308,504
1,424,572
(2.97)
Operating Revenue:
Electric utility operating revenue
Other business operating revenue
Net Income (loss)
Total Assets
Total Net Assets
Net Income (loss) (primary) per Share of Capital Stock
Non-Consolidated Basis
Hokkaido Electric Power Co., Inc. Millions of yen
Note: The U.S. dollar amounts represented here are the results of converting yen values at a rate of ¥103 = US$1 (the prevailing rate on March 31, 2014), and are included solely for convenience.
FY2014 ¥ ¥ ¥ ¥ ¥ ¥ ¥
253,967
286,553
18,828
559,349
(120,083)
(584.13)
-FY2014 FY2013Thousands of U.S. dollars (Note)
U.S. dollars (Note) Yen ¥ ¥ ¥ ¥ ¥ ¥ ¥
267,342
306,389
30,910
604,643
(64,207)
(312.34)
-2,595,553
2,974,650
300,097
5,870,320
(623,368)
(3.03)
-Operating Revenue:
Residential (lighting)
Commercial and Industrial
Other
Profit and Dividends:
Net Income (loss)
Net Income (loss) (primary) per Share of Capital Stock
Cash Dividends per Share of Capital Stock
$ $ $ $ $ $ $
Note: HEPCO’s fiscal year begins on April 1 and ends on March 31. Accordingly, FY 2014 runs from April 1, 2013, to March 31, 2014.
1
2
3 - 4
5 - 6
7 - 8
9 -10 11 12 13 14 15 16
17 - 18
Contents
Introduction
Financial Highlights
Fields of Business
Initiatives for a Stable Power Supply
Safety Countermeasures at the Tomari Nuclear Power Station
Securement of a Stable Power Supply
Initiatives for the Future
Establishment of a Power Supply Structure for the Future
Broader Introduction of Renewable Energy Sources
Promotion of Energy Conservation
All-out Efforts for Improved Manage-ment Efficiency
Human Resource Development
Relations with Local Communities
and Society
Environmental Impact Reduction
Coexistence with Local Communities
H E PCO
Hokkaido Electric Power Co., Inc.
1. Tohoku Electric Power Co., Inc. 2. Tokyo Electric Power Co., Inc. 3. Chubu Electric Power Co., Inc. 4. Hokuriku Electric Power Co., Inc. 5. Kansai Electric Power Co., Inc. 6. Chugoku Electric Power Co., Inc. 7. Shikoku Electric Power Co., Inc. 8. Kyushu Electric Power Co., Inc. 9. Okinawa Electric Power Co., Inc.
1 2 3 4 5 6 7 8 Area 22.1%
(as of October 1, 2013)
Population (as of January 1, 2014)
No. of households (as of January 1, 2014) Hokkaido
Japan 83,457.48 km2
377,961.73 km2
Location
Longitude: 139° 20’ – 148° 53’ east Latitude: 41° 21’ – 45° 33’ north
Hokkaido Data
4.3% Japan 128,438,348 4.9% Hokkaido Japan 2,727,383 55,952,365 Hokkaido 5,463,045Hydroelectric power plant
Another company’s hydroelectric power plant Thermal power plant
Another company’s thermal power plant Nuclear power plant
Geothermal power plant Photovoltaic power plant Substation Switching station
Another company’s conversion station Transmission line (275 kV) Transmission line (187 kV) Transmission line (100 kV – 110 kV) Another company’s transmission line
(As of June 30, 2014)
Power Transmission/Distribution Facilities (as of March 31, 2014)
8,328 km 46,584 22,427 MVA 68,155 km 1,474,860 Transmission line route length
Number of support structures Number of substations Distribution line route length
Number of support structures 371 1,240 MW 4,213 MW 3,900 MW 148 MW 165 MW 2,070 MW 25 MW 1 MW 7,549 MW 55 12 6 1 5 1 1 1 70 Power Generation Facilities (as of June 30, 2014)
Hydroelectric power plants Thermal power plants
Steam power Gas turbine Internal combustion
Nuclear power plant Geothermal power plant Photovoltaic power plant Total
(Source: Ministry of Land, Infrastructure, Transport and Tourism’s Geospatial Information Authority of Japan website) (Source: Ministry of Land, Infrastructure, Transport and Tourism’s Geospatial Information Authority of Japan website)
(Source: Ministry of Internal Affairs and Communications website)
(Source: Ministry of Internal Affairs and Communications website)
Fields of Business
Mori
Shiriuchi
Hokkaido-Honshu (Kitahon) HVDC Link Date Tomari Hoheikyo Tomatoh-Atsuma Tomakomai Okuniikappu Niikappu Takami Shizunai Onbetsu Tomura Tokachi Nokanan Takisato Sunagawa Naie Uryu
The Niseko area, where people enjoy skiing in winter and outdoor sports in summer Shiretoko, a Hokkaido tourist resource inscribed on the World Natural Heritage List
◎
Hokkaido’s tourism, agriculture and fisheries enjoying symbiotic relationships with nature
Hokkaido is approximately 83,000 km
2in area, accounting for more than one
fifth of Japan’s total landmass. The prefecture is characterized by its splendid
natu-ral scenery – beautiful coastal areas with capes, oddly shaped rocks and sandy
beaches, primarily natural forests, magnificent and varied mountains, lakes with
beautiful landscapes, and vast wetlands. Many tourists, both from Japan and
over-seas, visit Hokkaido to experience this magnificent natural environment.
Although wintertime conditions in Hokkaido are very harsh with heavy
snow-fall and severe cold, it is the ideal location for winter sports.
The fertile ground has allowed agriculture and the livestock industry to prosper.
Hokkaido boasts the nation’s largest production volume of wheat, potatoes,
onions, fresh milk and many other agricultural and livestock products.*
The production volume from the marine fishery and aquaculture industry in
waters surrounding the prefecture is also the largest in Japan.* Hokkaido prides
itself on a high food self-sufficiency rate thanks to these gifts from Mother Nature.
* Source: Ministry of Agriculture, Forestry and Fisheries website
◎
Continuing to ensure a stable supply of electricity
Hokkaido has a population of approximately 5.5 million. Its population density
is about 65 people per km
2, which is approximately one fifth of the national
aver-age. The general impression of Hokkaido is one of vastness with an open-minded
atmosphere; this may be related to the character of the locality, which enables
people to lead relaxed lifestyles.
On the other hand, many difficulties must be overcome to deliver electricity
throughout this vast, sparsely populated land. To protect the natural
environ-ment, measures to tackle global warming are also necessary.
◎
Tsunami countermeasures
HEPCO’s management does not expect a
tsunami strike large enough to reach the
alti-tude of the Tomari Nuclear Power Station
site. However, to reduce the risk of safety
function loss due to a tsunami, HEPCO is
building a coastal levee reaching a height of
16.5 meters above sea level (scheduled for
completion in December 2014) and
imple-menting other related countermeasures.
◎
Water-tightness countermeasures
HEPCO plans to install watertight doors
and water-sealing plates to prevent
flood-ing in areas housflood-ing equipment considered
safety-critical in the case of tank/pipe
break-age or water leak.
◎
Tornado and fire countermeasures
With the largest tornado ever to hit Japan as a benchmark, HEPCO has taken
steps to prevent loose items from becoming projectiles and causing the loss of
safety-critical function in the case of a tornado with wind speeds up to 100 m/s.
Countermeasures also include the installation of protective netting and other
safety equipment to protect facilities from flying objects.
In addition to using fire detectors and fire extinguishers in accordance with fire
pre-vention laws and regulations, HEPCO plans to build fire-resistant walls between
machinery, install earthquake-proof automatic fire extinguishers, and add fire
detectors with a detection method different from that of existing units.
Preparation for natural disasters on an unprecedented scale
Coastal levee construction Water-pumping vehicle
Alternative outdoor feedwater tanks
Watertight door
◎
Reinforcement of the core
flooding function
In case of containment vessel spray pump
functionality loss, HEPCO has installed
back-up pumping facilities and deployed
water-pumping/supply vehicles.
Countermeasures for a major accident and other emergencies
◎
Securement of water supply
To ensure a constant supply of water to
steam generators and other facilities, HEPCO
has secured water sources including raw
water tanks and filtered water tanks. Five
alternative outdoor feedwater tanks (each
with a capacity of approximately 80 m
3) have
also been installed on high ground. The use
of seawater is a further option if necessary.
◎
Countermeasures to prevent
hydrogen explosions
HEPCO has installed facilities that will
pre-vent hydrogen explosions by reducing
hy-drogen concentration in a reactor
contain-ment vessel in the case of fuel damage.
Safety Countermeasures at the Tomari Nuclear Power Station
Static catalytic hydrogen recombiner
◎
Reinforcement of power supply functionality
HEPCO has installed back-up emergency power generators and vehicle-mounted
power generators that will supply electricity to facilities designed to cool nuclear
reactors and reduce internal pressure in the case of the loss of all power. These will
be used until permanent emergency power generators are in place. HEPCO has also
installed additional storage batteries to reinforce the capacity for power supply to
facilities requiring a DC power source in the case of an accident.
Storage batteries
Sea
Water cannons Large-capacity
seawater pumping vehicle
Silt barriers
Reactor building
HEPCO has installed water cannons to prevent radioactive materials from
spread-ing into the atmosphere, and has also built silt barriers to prevent their spread
into the ocean.
Prevention of radioactive material spread
HEPCO is proceeding with the early construction of an emergency station to be
shared for Unit 1, Unit 2 and Unit 3 in accordance with new regulatory requirements.
HEPCO also plans to build an earthquake-resistant radiation-proof emergency
response center with communication equipment on high ground. This will
pro-vide enough space – a total floor area of 7,400 m
2– to allow around 600 workers
to respond effectively in the case of various kinds of emergencies.
Construction of an emergency station and an
emergency response center
Emergency station (under construction)
Power supply based on a balanced combination of sources
To ensure a stable power supply, it is important to achieve a balanced mix of power sources by leveraging the operational characteristics, fuel procurement stability,
eco-nomic efficiency, environmental performance and other characteristics of individual resources.
Nuclear power and thermal power from overseas coal are the mainstay power sources due to their advantages of stable fuel availability and power generation
cost-effectiveness. Meanwhile, pumped-storage, regulating reservoir and other hydroelectric power plants, as well as oil-fired thermal power plants, are seen as sources for use
during peak times because of their capacity to accommodate rapid changes in demand.
Thermal power plant inspection and repair
Regardless of natural aging, HEPCO’s thermal power plants
must continue to operate at high rates until the resumption
of power generation at the Tomari Nuclear Power Station.
HEPCO seeks to ensure stable thermal power plant
opera-tion by performing necessary repairs wherever possible
during low-demand periods among other measures.
◎Power supply measures in response to the prolonged
shutdown of the Tomari Nuclear Power Station
HEPCO has been working with a tight power supply since the
start of the Tomari Nuclear Power Station’s prolonged
shut-down.
The company asked its customers to reduce power
consump-tion and implemented a range of power supply measures,
including higher operation rates, deferred equipment
mainte-nance periods, enhanced output levels at thermal power plants
and the installation of emergency power supply systems.
Thermal power plant boiler inspection 0
1,000 2,000 3,000 4,000 5,000 6,000
(MW)
0 1,000 2,000 3,000 4,000 5,000 6,000
(MW)
0 6 12 18 24 0 6 12 18 24
(Time) (Time)
Nuclear power Overseas coal-fired
thermal power
Hydroelectric power
Domestic coal-fired thermal power Oil-fired thermal power
New energy sources, others
Overseas coal-fired thermal power Hydroelectric power
Domestic coal-fired thermal power Oil-fired thermal power
New energy sources, others
Securement of a Stable Power Supply
Power generation breakdown
During operation at the Tomari Nuclear Power Station (December 15, 2010)
After Tomari Nuclear Power Station shutdown (December 13, 2013)
T
Hokkaido is characterized by harsh natural conditions
associated with its vast land area and cold snowy winters.
Despite this, the frequency of power outages has been
reduced through various initiatives such as appropriate
equipment maintenance and the use of unique
tech-nologies. HEPCO has also sought to reduce the duration
of any outages that do occur through measures such as
developing a system to quickly identify faults in
transmis-sion and distribution lines toward prompt recovery.
HEPCO works to maintain and improve its emergency
response capability through practical training for all
pos-sible scenarios, including large-scale natural disasters
(e.g., typhoons, earthquakes and blizzards) and tight
supply-demand situations caused by disconnection of
large-scale power sources from power systems.
Snow removal from distribution facilities
Prevention of power outages and support for prompt recovery
Capacity reinforcement for response to natural disasters and other emergency situations
Duration Frequency
Duration (min./household) Frequency (no. of times/household)
Duration and frequency of power outages per household per year
(FY)
2006 2001 1991
1981 2007 2008200920102011 2012 2013 2014
*The duration and frequency of power outages significantly increased in FY 2013 as compared to the previous fiscal year due to an extended outage caused by a blizzard in November.
0 50 100 150 200 250
0.0 0.4 0.8 1.2 1.6 2.0 248
42
14
9 7 6 5 7 6
48
9 8
1.78
0.41
0.18 0.13 0.19 0.16
0.10 0.10 0.12 0.13 0.11 0.19
Training for disconnection of a large-scale power source from power systems
◎
High efficiency
Combined cycle power generation is an efficient electric power production method
based on a combination of gas and steam turbines. Fuel is burned to drive a gas turbine
for power generation, and heat recovered from the exhaust gases produced is then
used to drive a steam turbine.
◎
Outstanding environmental performance
Combined cycle power generation enables
better environmental performance than other
thermal power generation types due to its high
efficiency and the use of natural gas, which
pro-duces the least CO
2of all fossil fuels.
Natural gas
To power transmission line
Generator Steam turbine
Steam
Air
Compressor Gas turbine Combustor
Heat recovery steam generator (HRSG)
Flue gas denitrizer Stack
Switching station
From intake Feed-water pump
Exhaust gas
Steam drum
Condenser
Sea
To outlet Transformer
HEPCO plans to construct its first liquefied natural gas (LNG)-fuelled combined
cycle power plant as part of its efforts to address the aging of thermal power plants,
diversify fuel types and distribute power sources in order to ensure a stable power
supply into the future.
Toward the scheduled commencement of operation for Unit 1 in February 2019, the
company is proceeding with the detailed design of plant facilities and other related
preparations as well as constructing an LNG tank and other fuel facilities.
Construction of the Ishikariwan Shinko Power Station
0.864
0.695
0.376 kg-CO2/kWh (at sending end)
Source: Central Research Institute of Electric Power Industry
Coal-fired thermal power
Oil-fired thermal power
LNG combined cycle
Sea water pump
Establishment of a Power Supply Structure for the Future
Conceptual diagram of the Ishikariwan Shinko Power Station CO2 emissions per kWh of power generated
Imabetsu Converter Station
Hokuto Converter Station
(Seikan Tunnel)
*The existing route is owned by Electric Power Development Co., Ltd.
Existing route
New route for reinforcement
Existing and new Kitahon HVDC Link routes
: Substation
To ensure a stable power supply in Hokkaido, HEPCO
plans to reinforce the existing Hokkaido-Honshu
(Kitahon) HVDC Link (600 MW) by adding a new
300-MW route.
Reinforcement of the Kitahon HVDC Link
The under-construction Kyogoku Power Station (200 MW × 3 units) will be a pure pumped-storage hydroelectric
power facility that supports flexible response to rapid changes in electricity demand. HEPCO plans to commence
operation of Unit 1 in October 2014.
Construction of the Kyogoku Power Station
Underground power plant (bringing in of the generator-motor rotor)
Overview of the Kyogoku Power Station
Penstock Underground power plant
Upper reservoir
Lower reservoir Kyogoku Dam
Kutchan Town
Tailr ace tunnel Upper reservoir
Lower reservoir (Kyogoku Dam)
Outline of reinforcement work
Capacity
Voltage
Schedule
300 MW
250 kV (DC)
Commencement of work: April 2014
Broader Introduction of Renewable Energy Sources
HEPCO is working to expand renewable energy introduction across its group. As of
FY 2014, renewable energy sources account for approximately 20 percent of total
power generated in Hokkaido.
Photovoltaic power introduction Wind power introduction
(FY)
(MW)
Photovoltaic power generation
· installed capacity: 354 MW Wind power generation · installed capacity: 316 MW
*As of March 31, 2014
0 100 200 300 400
1999 2001 2006 2011 2012 2013 2014
1 3 11
43 63 104 354 7 78 241 276 316
Unit: 1,000 MWh; figures in parentheses: % 34,213 6,781 5,669 144 204 627 136 16.6 0.4 0.6 1.8 0.4 ( ) ( ) ( ) ( ) ( ) ( ) ( ) 100 19.8 Total power generated
Total power generated using renewable energy
Actual amounts in FY 2014
289 289 Soya 105 MW 6 MW Rumoi 67 MW Kamikawa 16 MW Hidaka 5 MW 1 MW Kushiro 2 MW 57 MW Okhotsk 55 MW Tokachi 72 MW Iburi 55 MW 14 MW Nemuro 17 MW 13 MW Ishikari 6 MW 43 MW Sorachi 15 MW Shiribeshi 21 MW 2 MW Oshima 4 MW 11 MW Hiyama 83 MW
◎
Overview of verification testing for broader introduction of
wind power generation with TEPCO
To further expand the introduction of wind power generation, HEPCO plans
to conduct verification tests using the Kitahon HVDC Link in conjunction
with Tokyo Electric Power Company (TEPCO). This will expand wind power
interconnection capacity by 200 MW to 560 MW. HEPCO will further seek to
expand wind power generation based on expertise gained from the
verifica-tion tests.
Installation site
Demonstration facility
Demonstration period
Demonstration items
Minami-Hayakita Substation (Abira Town, Hokkaido)
Redox flow batteries (rated output: 15 MW; rated capacity: 60 MWh)
FY 2014 – FY 2019 (6 years)
· Development of a frequency variation control technique · Development of an operation method to handle surplus power · Battery performance evaluation
· Others
HEPCO is engaged in a national project to verify the feasibility of using
large-scale storage batteries for broader introduction of renewable energy sources.
◎
Overview of the Large-scale Storage Battery System
Demonstration Project
Toward broader introduction of renewable energy
Facts and figures on renewable energy sources introduced
Wind and photovoltaic power generation sources introduced by the Subprefectural Bureau
Introduction of wind and photovoltaic power Percentages of electricity generated using
renewable energy sources against all power generated in Hokkaido
Hydroelectric energy
Geothermal energy
Photovoltaic energy
Wind energy
Biomass energy
Promotion of Energy Conservation
HEPCO is currently preparing for the introduction of smart meters as part of its efforts to help customers
conserve energy.
The installation of these units is scheduled for completion by FY 2017 for high-voltage users (e.g., office
buildings, commercial facilities and factories) and between FY 2016 and FY 2024 for low-voltage users (e.g.,
households and shops).
Introduction of smart meters
For household space heating and water heating,
HEPCO promotes the use of heat pump systems
fea-turing outstanding energy conservation and
envi-ronmental performance.
In particular, the company encourages customers to
replace conventional nighttime storage-based
heat-ing devices with heat pump systems to support
energy conservation efforts.
Promotion of energy-saving products
◎
Expected effects of smart meter introduction
The introduction of smart meters is expected to conserve energy and reduce costs by helping customers use
electricity efficiently based on the visualization of power consumption levels.
HEPCO is set to consider promoting energy conservation through data provision using the Home Energy
Man-agement System (HEMS) and other technologies.
This system enables visualization of the operational status and energy consumption levels of network-connected home electronics as well as their remote operation and automatic control.
■
Home Energy Management System (HEMS)
HEMS controller
HEMS monitor Smart meter
Energy source of the heat pump system Energy source of a
heating device
Use of a heat pump system
Electrical energy
Conceptual drawing of a heat pump system
Electrical energy
Heat in the air, ground and
Upgrade of water-turbine runners at hydroelectric power plants
· During equipment replacement at hydroelectric power plants, HEPCO considers and conducts the changeover of water-turbine runners to a type optimally designed using new technology to more efficiently harness the energy of flowing water.
· Replacement improves output without the need to alter hydraulic conditions (e.g., height differences and flow rate) and thus helps to reduce fuel use at thermal power plants.
Steady enhancement of management efficiency
Significant increases in fuel expenses and other costs due to the prolonged suspension of operations at Tomari Nuclear Power Station have continued to squeeze the
company’s bottom line. The HEPCO Group will continue its concerted efforts to improve management efficiency.
◎
Reduction of capital investment costs
HEPCO carefully selects the construction work needed to ensure a stable power
supply and improve facility safety. The company also works to enhance efficiency
and reduce costs at each stage of the work from planning to implementation.
The company plans projects involving significant capital investment, such as the
construction of the Ishikariwan Shinko Power Station and the capacity expansion
of the Hokkaido-Honshu (Kitahon) HVDC Link. Accordingly, efforts are made to
minimize construction costs through a range of initiatives including the
enhance-ment of design efficiency, the reduction of procureenhance-ment costs and the expansion
of competitive bidding.
◎
Reduction of repair costs
HEPCO seeks to ensure a stable power supply and cost reduction by executing
equipment repair work based on detailed understanding of equipment
deteriora-tion levels and other consideradeteriora-tions, as well as a careful examinadeteriora-tion of the
urgency and necessity of the repairs.
The company also works to minimize repair costs through efforts to enhance
con-struction work efficiency, such as the development and implementation of new
technologies and new construction work methods as well as the coordination of
periods of construction work. Efforts to reduce equipment procurement costs are
also ongoing through initiatives such as the expansion of competitive bidding
and the review of equipment specifications.
◎
Reduction of power supply and demand costs (for fuel etc.)
HEPCO is working to ensure stable fuel procurement and reduce procurement
costs through a range of initiatives, including the diversification of production
regions and contract periods for overseas coal procurement.
The company also seeks to reduce fuel expenses at thermal power plants by
increasing the output of hydroelectric power plants.
◎
Reduction of equipment procurement costs
HEPCO runs a Procurement Study Committee involving all relevant sections
(including those handling power generation, transmission and distribution,
procure-ment and manageprocure-ment) to make concerted company-wide efforts for the reduction
of equipment procurement costs and the expansion of competitive bidding.
＜Conventional type＞ ＜After change＞
The new water-turbine runner employs an optimal design for the blade angle and other considerations to more efficiently harness the energy of flowing water.
This center helps nuclear power plant operators and
maintenance workers to build knowledge and
im-prove technical expertise.
This center provides thermal power plant engineers
with opportunities to improve their skills in plant
op-eration and maintenance and build capacity to
respond to the deterioration of aged equipment.
This center is designed to produce the technical
spe-cialists required to ensure a stable power supply
based on education and training using facilities and
equipment.
Systematic human resource development and transfer of technical expertise
In the near future, many veteran HEPCO employees will reach retirement age and pass their duties on to younger workers. Against this background, the company seeks
to maintain and reinforce systems that support a stable power supply by securing the necessary personnel for the future, supporting the transfer of skills and
tech-niques, and facilitating junior worker training through reinforced on-the-job programs and educational courses at in-house training facilities.
Nuclear Power Education Center
Thermal Power Technology Training Center
Takikawa Technical Center
Beach cleaning activities Recycling of coal ash to produce soil improvement materials
The prolonged shutdown of the Tomari Nuclear Power Station after the Great East Japan Earthquake of March 2011 has caused a significant increase in CO2 emissions due to the increase in thermal power generation.
To support the establishment of a low-carbon society, HEPCO is committed to reducing CO2 emissions through a range of demand- and supply-side initiatives,
including safe and stable nuclear power generation. Utilization of nuclear
power generation
Promotion of energy conservation
Environmental initiatives
◎
Promotion of measures against global warming
HEPCO promotes a range of CO
2emission control initiatives, such as the utilization
of nuclear power generation on the major premise of guaranteed safety, the
expansion of renewable energy introduction (e.g., hydroelectric, wind and
photo-voltaic power), the improvement of efficiency in power generation, transmission
and distribution, and the promotion of energy conservation.
◎
Promotion of a recycling-based society
HEPCO promotes the 3 Rs – reduction, reuse and recycling of waste – with the
target of recycling approximately 95% of all industrial waste produced (e.g.,
coal ash and rubble) by FY 2017.
◎
Development of environmental relations activities
The HEPCO Group acts as a whole in
its green public relations activities
while valuing exchanges with local
residents. These include beach
clean-ing, streetlight cleaning and flowerbed
creation in various regions of Hokkaido.
Impacts of prolonged Tomari Nuclear Power Station shutdown
0 5 10 15 20 25
Facility utilization factor (%) CO2 emissions (million t-CO2)
2014 2013 2012 2011 2010 2009
(FY)
CO2 emissions Tomari Nuclear Power Station facility utilization factor (%) 0
20 40 60 80 100
11.42 13.62 18.72
89.7 81.9
66.2
58.6
4.3 15.60
21.44
0.0 20.77
Environmental Impact Reduction
Expansion of renewable energy introduction
improvement of power generation efficiency and reduction of transmission/distribution loss
Recycling of scrap electric wire to produce copper materials
Expansion of renewable energy introduction
Shutdown of Tomari Nuclear Power Station Unit 3
Commencement of operations at Tomari Nuclear
Power Station Unit 3 Shutdown of Tomari Nuclear Power Station Unit 1
Investors’ meeting
Communication with investors
Support for the social independence and social participation
of people with disabilities
HEPCO undertakes IR activities to
allow appropriate capital market
evaluation by disclosing information
proactively through briefings and via
its website. We also strive to further
improve our corporate value by
reflect-ing opinions and feedback in
manage-ment policies.
This facility showcases a life-size nuclear reactor model and other exhibits to help visitors under-stand how nuclear power genera-tion works.
This facility gives visitors opportu-nities to learn about the mecha-nisms behind thermal power gen-eration and provides an overview of the Tomatoh-Atsuma Thermal Power Station.
This facility hosts laboratory class-es for elementary and junior high school students to enhance enjoy-ment of science and technology, which are closely related to elec-tricity.
HOKUDEN ASSOCIA is a member of the HEPCO Group and a Special Subsidiary
Company (a status provided to
busi-nesses giving special consideration to
people with disabilities), in which
people with disabilities engage in
printing, bookbinding, closed caption
produc tion and other ac tivities.
HEPCO will continue to support the
social independence and social
par-ticipation of people with disabilities
through employment.
Tomarin-kan
Nuclear Power PR Center
Tomatoh-Atsuma Thermal Power Station
Hokuden Karyoku Naruhodo Center
Science games at
Omoshiro Laboratory
PR facilities
Communication of information using SNSs
HEPCO values communication with customers as exemplified by the promotion
of its business activities and the provision of useful daily living information via
social media channels including
Facebook, Twitter and YouTube.
Chairman of the Board Yoshitaka Sato
President and Director Akihiko Mayumi
Corporate Profile
Corporate Data
(as of March 31, 2014)
Board of Directors and Auditors
(as of September 25, 2014)
Organization Chart
(as of June 30, 2014)
Established
Paid-in Capital (non-consolidated)
Number of Shareholders
Total Assets (non-consolidated)
No. of Contracts
Peak Demand
(generating end, record renewed on January 12, 2011)
Electricity Sales
(FY 2014)
Gross Income (ordinary revenue in FY 2014)
Number of Employees (non-consolidated)
May 1, 1951
¥114,291 million 88,271 ¥1,719,859 million 3,622,084 401,149 4,023,233 5,788 MW 11,594,557 MWh 2,602,260 MWh 16,439,033 MWh 30,635,850 MWh ¥607,652 million 5,720 Residential
Commercial and industrial Total
Residential
Commercial and industrial Eligible customers Total
Member of the Board, Executive Vice President Member of the Board, Executive Vice President Member of the Board, Executive Officer Member of the Board, Executive Officer Member of the Board, Executive Officer Member of the Board, Executive Officer Member of the Board, Executive Officer Member of the Board, Executive Officer
Director Advisor and Director
Senior Corporate Auditor Senior Corporate Auditor Corporate Auditor Corporate Auditor Corporate Auditor Kenyu Takahashi Osamu Sakai Hiroyuki Onmura Taiji Togashi Masahiro Mori Hiroyuki Hayashi Michihiro Soma Ichiro Sakai Katsuhiko Kawai Ryoko Sasaki Kimihiro Honma Kanji Abe Shigeki Ichikawa Jun Hasegawa Yukihiro Shimomura
Internal Audit Sec.
Secretary Office
Corporate Planning Dept.
Planning Division
Environmental Affairs Office
Information Systems & Telecommunications Dept.
Research & Development Dept.
Sales Dept.
Branch Offices
Sales Dept. (only in Sapporo) HEPCO Contract Center
Service Offices
Distribution Dept.
Engineering Dept.
Thermal Power Dept.
Nuclear Power Quality Assurance Office Nuclear Power Dept.
General Power Network Centers Trunk Network Work Center
Tomari Nuclear Power Office Hydropower Centers
Hydroelectric Power Plant Construction Offices Thermal Power Plant Construction Office Hydropower Dept.
Civil Engineering Dept.
Personnel & Labor Relations Dept.
Public Relations Dept. General Affairs Dept.
Accounting & Finance Dept. Purchasing & Contracting Dept.
Tomari Nuclear Power Station Power Network Centers Central Information and Telecommunications Office
Power Wheeling Center Central Load Dispatching Center
Fuel Office Coal Ash Recycling Promotion Office
Nuclear Fuel Management Office
General Training Center
Business Ethics Office Litigation Office Power Plant Siting Office
Thermal Power Plants Geothermal Power Plant Internal-combustion Power Plants
Tokyo Office Chairman President Executive Vice Presidents Executive Officers
Customer Service Division
Power Network Division
Power Generation Division
Business Support Division
Nuclear Power Promotion Division
Hokkai Electrical Construction
Hokkaido Electric Meter Industry
HOKUDEN KOGYO
HOKUDEN SOGO SEKKEI
Hokkaido Power Engineering
The Tomatoh Coal Center
HOKUDEN ECO-ENERGY
Hokuden Service
Hokkaido Telecommunication Network
Hokuden Information Technology
Hokuden Sports Fields
HOKUDEN ASSOCIA
Hokkaido Records Management
*Employee numbers are as of March 31, 2014.
Company name Paid-in capital (millions of yen) No. of Employees* Principal business
1,306
184
311
155
1,223
39
121
2,025
240
398
5
35
25 1,730
30
95
30
1,660
5,000
1,860
50
5,900
200
10
300
10
HEPCO Group Companies
(as of June 30, 2014)
Electrical and telecommunications works, civil engineering and construction, piping, air-conditioning and water supply/drainage facility works, disaster prevention/security equipment works
Maintenance, manufacture and sales of electricity meters, agency business of inspection, tests and installation of electric meters, machinery and equipment
General management of buildings, civil engineering and construction, environmental conservation (e.g., greenery maintenance and management), sales of fuel, equipment and materials, public bathhouse business, cleaning/security service business, utility pole advertising
Comprehensive construction consulting services in the fields of civil engineering, construction, electricity, environment and energy
Thermal power generation business, commissioned operation of thermal power plants, construction, maintenance, repair and operation of power generation facilities and various types of plants, consulting services
Unloading, storage and delivery of overseas coal, marine transport agency business, customs clearance
Hydroelectric power generation business, sales of electric power generated by solar power and other renewable energy, commissioned operation and maintenance of power generation facilities, consulting services
Business related to electricity meter inspection and electricity billing, design, investigation and maintenance of power distribution equipment, general consultation services concerning repair of housing appliances in all-electric homes, proposals for energy conservation
Telecommunications services, such as Ethernet communications networks and Internet connections, installation, maintenance, supervision and consulting of information communications networks, sales of network-related ma-chinery and equipment, security business
Consulting, development, operation and management, and education regarding information processing systems, sales of information processing equipment and software, Internet data center services, other information pro-cessing-related services
Management of soccer clubs, soccer field rental, planning, hosting and operation of consigned seminars and events
Design, printing and bookbinding, production of closed captions, sales of corporate merchandise and gift products, sales of everyday sundries, food, etc.
Head Office
2, Higashi 1-chome, Odori, Chuo-ku, Sapporo, Hokkaido 060-8677, Japan Tel: (81) 11-251-1111 URL: www.hepco.co.jp
Tokyo Office
Marunouchi Kitaguchi Building, 6-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-0005, Japan Tel: (81) 3-3217-0861
Financial Section 2014
Year Ended March 31, 2014
1 Five-Year Summary (Consolidated Basis) 3 Financial Review (Consolidated Basis) 5 Business Risk
7 Consolidated Balance Sheets 9 Consolidated Statements of Operations 10
Consolidated Statements of Changes in Net Assets 11
Consolidated Statements of Cash Flows 12
Notes to Consolidated Financial Statements 13
Independent Auditor’s Report 31
Contents
Millions of yen
2014 2013 2012 2011 2010
. ... ...
.
Hokkaido Electric Power Co., Inc. and Consolidated Subsidiaries Fiscal years ended March 31, 2014, 2013, 2012, 2011 and 2010
Five-Year Summary (Consolidated Basis)
Statements of operations:
Operating revenue ... Operating income (loss)...
Net income (loss) ... Comprehensive income ... Ordinary income (loss)...
Net income (loss) (primary) ...
Cash dividends ... Net assets ...
Assets and capital:
Total assets ... Net assets ...
Financial indications(%):
Return on shareholders’ equity ...
2
Shareholders’ equity ratio ... Price earnings ratio* ...
*1
Per share of capital stock (yen):
Cash flows:
Cash flows from operating activities ... Cash flows from investing activities ... Cash flows from financing activities ... Cash and cash equivalents at end of period ...
Number of employees*3...
Diluted net income per share is not provided for 2010 and 2011 as there are no dilutive securities.
Diluted net income per share is not provided for 2012, 2013 and 2014 as there are no dilutive securities and the Companies recorded net loss. Price earnings ratio is not provided for 2012, 2013 and 2014 as the Companies recorded net loss.
Accounting for Hokkaido Electric Meter Industry, Hokuden Service and Hokuden Information Technology was previously conducted under the equity method. Since 2013, these organizations have been treated as consolidated subsidiaries in view of their importance.
*1
*2
*3
8,252 8,130 7,802
10,938 11,069 106,941 (107,282) 32,977 53,593 ¥ 126,535 (125,348) (19,231) 20,956 ¥ 120,314 (143,423) 21,688 39,001 ¥ (41,215) (113,125) 176,809 77,357 ¥ ¥ 13,912 (130,484) 160,292 121,077 ¥ ¥ ¥ ¥ ¥ (20.12) 19.54 2.96 24.37 1.87 25.42 (53.62) 10.78
— 27.76 49.33
— (38.76) 7.58 — (350.55) 50.00 1,538.44 ¥ 58.10 50.00 1,945.50 ¥ 36.37 50.00 1,939.92 ¥ ¥ ¥ ¥ (646.08) — 871.17 ¥ ¥ (306.34) — 657.60 ¥ ¥ ¥1,618,850 327,280 ¥1,641,561 410,741 ¥1,607,027 418,943 ¥ ¥ ¥ ¥1,660,740 190,403 ¥ ¥1,782,776 146,731 ¥ 634,439 2,482 (72,066) ¥ 566,272 43,198 11,982 ¥ 549,305 31,694 7,658
(73,036) 11,619 —
¥
¥ ¥ ¥
582,990 (115,493)
(9,669) 29,287 17,788 (128,184) (132,819) ¥ (131,591) ¥ 630,340 (80,168) (95,370) (62,972) ¥ (54,171) ¥
Operating revenues (left) Operating income (loss) (right) 700 500 600 300 400 200 100 0 (100) (200) 0 100 200 300 400 500
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
Net assets Shareholders’ equity ratio
(billons of yen)
Net assets/Shareholders’ equity ratio Operating revenues/Operating income(loss)
(billions of yen)
GWh
2014 2013 2012 2011 2010
Other data (Non-consolidated):
Electricity sales:
Non-eligible customers
Eligible customers ... Residential ...
Electric power supply:
Generated by ...
Purchased power (net) ... Hydroelectric ... Fossil fuel ... Commercial and industrial ...
12,078 2,651 17,416 12,124 2,507 17,671 11,875 2,368 17,208 11,818 2,696
20,564 12,681 14,986
24,349
10,663 16,258 12,381
784
83 101 115
130
4,865 3,797 4,461
6,283
(3,429) (258) (108)
(8)
(46) (172) (144)
(22) 16,670
32,145 32,302 31,451
31,184
3,773 3,858 3,757
3,422
35,083 32,898 31,239
28,685
(4,328) (3,963) (3,997) (3,754)
32,145 32,302 31,451
31,184 11,595 2,602 23,441 — 145 6,772 3 (23) 16,439 30,636 3,875 27,461 (3,577) 30,636 Nuclear ... Renewable ...
Interchange power (net) ... Power used for pumped storage ... Transmission loss and other ...
2 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 Electricity Sales
Residential Commercial and industrial Eligible customers
(GWh) 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000
Electric Power Supply (Generated by)
Hydroelectric Fossil fuel Nuclear Renewable
(GWh)
2010 2011 2012 2013 2014 2010 2011 2012 2013 2014
31,239 32,898
35,083
28,685
27,461 30,636
Financial Review (Consolidated Basis)
Operating Performance
Electric Power Segment
Other
3
In the fiscal year ended March 31, 2014, operating revenue of Hokkaido Electric Power Co., Inc. Group (hereafter “the HEPCO
Group”) increased by ¥47,350 million (+8.1%) from the previous year to ¥630,340 million on a consolidated basis.
Meanwhile, operating expenses increased by ¥12,026 million (+1.7%) from the previous year to ¥710,509 million.
Consequently, the HEPCO Group recorded operating loss of ¥80,168 million, which was ¥35,324 million less than the previous
year’s loss. It also recorded net loss of ¥62,972 million, which was ¥69,846 million less than the previous year’s loss, due in part to
the posting of deferred tax assets.
Electricity sales during the current fiscal year decreased by 1.8% from the previous year to 30.6 billion kWh on a consolidated basis.
Electricity sales to residential and commercial/industrial customers decreased by 2.2% to 14.2 billion kWh, primarily due to efforts by such customers to reduce power consumption.
Electricity sales to eligible customers decreased by 1.4% to 16.4 billion kWh, mainly due to efforts to reduce power consumption
and lower demand caused by increased in-house power generation as well as reduced paper/pulp production.
Operating revenue in the electric power segment increased by ¥45,240 million (+8.1%) year on year to ¥603,032 million, primarily due to higher electricity rates, effection of the fuel-cost adjustment system and other developments despite the fall in
electricity sales. Operating expenses increased by ¥9,193 million (+1.4%) year on year to ¥685,861 million due in part to higher fuel
prices and the prolonged suspension of Tomari Nuclear Power Plant’s operations, despite efforts to reduce labor costs and other
expenses as well as enhanced operation of thermal power plants run on overseas coal, which is cheaper than oil.
Consequently, the HEPCO Group recorded operating loss of ¥82,828 million, which was ¥36,046 million less than the previous
year’s loss.
Operating revenue from other business increased by ¥2,110 million (+8.4%) year on year to ¥27,308 million, chiefly due to higher
income from commissioned transmission in telecommunications business. Operating expenses rose by ¥2,832 million (+13.0%) from the previous year to ¥24,648 million, mainly due to increased sales costs in telecommunications business.
Financial Position
(Assets)
(Liabilities)
(Net assets)
Cash Flows
(Cash Flows from Operating Activities)
(Cash Flows from Investing Activities)
(Cash Flows from Financing Activities)
4
As of March 31, 2014, total assets stood at ¥1,782,776 million, up ¥122,035 million (+7.3%) from the previous year.
This is mainly because of increased construction in progress (e.g., the Kyogoku Power Plant), the posting of deferred tax assets and an increase in cash and deposits despite the depreciation of electric utility plant and equipment.
Net assets totaled ¥146,731 million, down by ¥43,671 million (−22.9%) from the previous year.
This was primarily due to a reduction of retained earnings resulting from net loss despite an increase in remeasurements for defined benefit plans following the adoption of the Accounting Standard for Retirement Benefits and other stipulations.
As a result, the shareholder equity ratio decreased by 3.2 points from 10.8% of the previous year to 7.6% at the end of current fiscal year.
Net cash provided by operating activities increased by ¥55,127million from the previous year (a net outflow of ¥41,215 million) to a net inflow of ¥13,912 million, chiefly due to the decreased loss before income taxes.
Net cash used in investing activities increased by ¥17,358 million (+15.3%) from the previous year to a net outflow of ¥130,484 million, chiefly due to acquisition of property, plant and equipment.
Net cash provided by financing activities stood at a net inflow of ¥160,292 million, chiefly due to increased interest-bearing debt. Cash and cash equivalents at year-end stood at ¥121,077 million, up ¥43,720 million from the previous year.
Business Risk
(1) Nuclear power generation
(2) Facility faults
(3) Institutional changes surrounding electricity business and other considerations
(4) Economic conditions
(5) Weather conditions
(6) Fuel cost fluctuations
5
Major risks that could affect the HEPCO Group’s financial performance are outlined below. The forward-looking statements provided here speculate on possible scenarios as of June 27, 2014. The HEPCO Group recognizes these risks and seeks to avoid them or
deal with them if they occur.
The HEPCO Group works to maintain the reliability of power-generation/distribution facilities through steady implementation of inspections/maintenance and other considerations. However, the group may incur costs in relation to the restoration of such facilities
in the event of faults caused by natural disasters, mechanical failure or other influences.
Economic stagnation could affect the HEPCO Group’s financial performance, as electric power sales depend on economic and production activities.
Fuel expenses are influenced by fuel-price and exchange-rate fluctuations. Accordingly, the HEPCO Group seeks to achieve a balanced mix of power sources and diversify price fluctuation risk by using different contracting methods for fuel purchases. The
group also operates a rate adjustment system by which fuel cost fluctuations are automatically reflected in electricity rates. However, significant fuel cost fluctuations and other factors could affect the group’s financial performance.
The HEPCO Group has implemented emergency safety measures at the Tomari Nuclear Power Plant since the March 2011 disaster, and also works to further enhance the safety and reliability of the plant while conforming to new governmental regulatory
requirements for such facilities. Related efforts include work to secure power sources, maintain reactor cooling functionality and
prevent flooding. The group also implements a variety of safety measures, including nuclear emergency drills for major accidents and other emergencies, and seeks to reinforce the system it has put in place to respond to such contingencies. In response to the July 2013 enforcement of new regulatory requirements, the group works to pass reviews on related conformity by promptly submitting
applications for permission regarding nuclear reactor establishment/changes and other necessary documentation.
Further increases in fuel costs due to prolonged suspension of the Tomari Nuclear Power Plant’s operations may affect the HEPCO Group’s financial performance.
Future developments in the government’s energy policy, such as power supply system reform (including retail electricity liberalization and the separation of power generation and transmission) could affect the HEPCO Group’s financial performance.
Other factors that could influence financial performance include future developments in the area of environmental regulations
concerning global warming as well as institutional reviews and cost fluctuations relating to the backend costs associated with nuclear power generation and nuclear fuel cycle policy.
The financial performance of electric utility companies is affected by temperature and other weather variables because electric power sales depend on such conditions.
Annual precipitation and snowfall could also affect the HEPCO Group’s financial performance because an excess or shortage of
(7) Interest-rate fluctuations
(8) Business other than electricity
(9) Personal information management
The HEPCO Group had an interest-bearing debt of ¥1,296.1 billion at the end of fiscal 2014. This could influence the group’s financial performance depending on changes in market interest rates.
However, such influence is expected to be limited because most of the HEPCO Group’s interest-bearing debt has fixed interest
rates.
The HEPCO Group engages in business activities outside the field of electric power based on prior evaluation and appropriate management. Any deterioration of business environments and other factors could make it difficult for the group to engage in commerce as expected.
The HEPCO Group seeks to ensure appropriate management of personal information relating to its customers and other stakeholders based on the “Act on the Protection of Personal Information” by improving internal rules and providing employee training. However, unforeseen problems involving personal information leakage could affect the group’s financial performance.
Hokkaido Electric Power Co., Inc. and Consolidated Subsidiaries as of March 31, 2014 and 2013
Millions of yen
ASSETS 2014 2013 2014
Noncurrent assets ... ¥1,480,925 $15,110,252
Electric utility plant and equipment (Notes 6 and 7) ... 1,040,508 9,794,640
Hydroelectric power production facilities ... 109,283 1,030,388
Thermal power production facilities ... 92,712 847,009
Nuclear power production facilities ... 257,075 2,303,213
Transmission facilities ... 178,361 1,687,504
Transformation facilities ... 80,506 769,834
Distribution facilities ... 271,852 2,663,621
General facilities ... 42,259 432,475
Other electric utility plant and equipment ... 8,456 60,563
Other noncurrent assets (Notes 6, 7 and 8) ... 53,522 565,669
Construction in progress ... 153,255 1,906,825
Construction in progress ... 153,073 1,905,757
Retirement in progress ... 181 1,058
Nuclear fuel ... 111,625 1,258,000
Loaded nuclear fuel ... 7,891 — Nuclear fuel in processing ... 103,733 1,258,000
Investments and other assets ... 122,014 1,585,106
Long-term investments ... 47,264 467,883
Deferred tax assets (Note 18) ... Net defined benefit asset (Note 17) ...
7,408 359,524
Other ... 67,443 606,320
Allowance for doubtful accounts ... (102) (844)
Current assets ... 179,814 2,198,242
Cash and deposits (Note 13) ... 77,357 1,175,504
Notes and accounts receivable-trade ... 43,378 436,436
Inventories ... 45,063 461,067
Deferred tax assets (Note 18) ... 1,739 36,174
Other ... 12,850 93,728
Allowance for doubtful accounts ... (574) (4,679) Total Assets ... ¥1,660,740
¥1,556,356
1,008,848
106,130
87,242
237,231
173,813
79,293
274,353
44,545
6,238
58,264
196,403
196,293
109
129,574
—
129,574
163,266
48,192
37,031
— 152,203 15,677
62,451
(87)
226,419
121,077
44,953
47,490
3,726
9,654
(482)
¥1,782,776 $17,308,504
See notes to consolidated financial statements.
Consolidated Balance Sheets
Thousands of U.S. dollars (Note 1)
Millions of yen
LIABILITIES AND NET ASSETS 2014 2013
Thousands of U.S. dollars (Note 1)
2014
See notes to consolidated financial statements.
Noncurrent liabilities ... ¥1,184,361 $12,975,436
Bonds payable (Notes 8 and 15) ... 524,127 5,816,796
Long-term loans payable (Notes 8 and 15) ... 448,673 5,243,106
Provision for retirement benefits (Note 17) ... 46,706 —
Provision for reprocessing of irradiated nuclear fuel ... 65,874 588,922
Provision for reprocessing of irradiated nuclear fuel without specific plans ... 8,183 82,631
Asset retirement obligations (Note 19) ... 82,407 692,650
Deferred tax liabilities (Note 18) ... 897 —
Other ... 7,490 178,135
Current liabilities ... 269,204 2,720,213
Current portion of long-term debt (Notes 8 and 15) ... 109,292 1,012,524
Short-term loans payable (Note 15) ... 53,020 514,563
Notes and accounts payable-trade ... 44,496 454,038
Accrued taxes ... 8,466 79,368
Deferred tax liabilities (Note 18) ... 69 —
67,949
Other ... 53,859 659,699
Reserves under the special laws ... 16,771 188,262
Reserve for fluctuation in water levels ... 16,771 188,262 Total liabilities ... 1,470,337 15,883,922
Net assets (Note 1):
Shareholders’ equity ... 176,967 1,106,582
Common stock ... 114,291 1,109,621
Capital surplus ... 21,174 205,572
Retained earnings ... 59,645 (32,310)
Treasury stock ... (176,300)
Accumulated other comprehensive income ... 2,122 205,796
Net unrealized gains on available-for-sale securities ... 2,122 39,572
Minority interests ... 11,312 112,184 Total net assets ... 190,403 1,424,572 Total Liabilities and Net Assets ... ¥1,660,740
¥1,336,470
599,130
540,040
—
60,659
8,511
71,343
Net defined benefit liability (Note 17)... 38,436 − 373,165
—
—
18,348
280,182
104,290
53,000
46,766
8,175
19,391
19,391
1,636,044
113,978
114,291
21,174
(3,328)
(18,159)
21,197
4,076
Remeasurements of defined benefit plans (Note 17) ... 17,121 — 166,223 11,555
146,731
¥1,782,776 $17,308,504
8
9
Consolidated Statements of Operations
Thousands of Millions of yen U.S. dollars (Note 1)
2014 2013 2014
See notes to consolidated financial statements.
Hokkaido Electric Power Co., Inc. and Consolidated Subsidiaries Fiscal years ended March 31, 2014 and 2013
Operating revenues ... ¥582,990 $6,119,805
Electric utility operating revenue ... 557,792 5,854,679
Other business operating revenue ... 25,197 265,126 Operating expenses (Note 10) ... 698,483 6,898,145
Electric utility operating expenses ... 676,667 6,658,844
Other business operating expenses ... 21,815 239,300 Operating income (loss) ... (115,493) (778,330)
Non-operating income ... 5,814 26,106
Dividends Income... 505 4,572
Interest income ... 1,090 11,242
Equity in earnings of affiliates ... 372 —
Gain on sales of noncurrent assets ... 83 4,058
Other ... 3,763 6,213 Non-operating expenses ... 18,505 173,689
Interest expenses ... 15,080 159,106
Other ... 3,425 13,485
Equity in losses of affiliates ... — 1,087
Ordinary revenue ... 588,804 6,145,922 Ordinary expenses ... 716,989 7,071,844 Ordinary income (loss) ... (128,184) (925,922) Provision or reversal of reserve for fluctuation in water levels ... 1,413 25,436
Provision of reserve for fluctuation in water levels ... 1,413 25,436 Income (loss) before income taxes ... (129,598) (951,359)
Income taxes-current ... 2,296 29,728
Income taxes-deferred... 477 (372,000) Total income taxes (Note 18) ... 2,774 (342,262) Income (loss) before minority interests ... (132,373) (609,097) Minority interests in income ... 446
¥630,340
603,032
27,308
710,509
685,861
24,648
(80,168)
2,689
471
1,158
—
418
640
17,890
16,388
1,389 112
633,030
728,400
(95,370)
2,620
2,620
(97,990)
3,062
(38,316)
(35,253)
(62,737)
235 2,281
Consolidated Statements of Comprehensive Income
Thousands of Millions of yen U.S. dollars (Note 1)
2014 2013 2014
Hokkaido Electric Power Co., Inc. and Consolidated Subsidiaries Fiscal years ended March 31, 2014 and 2013
Income (loss) before minority interests ... ¥(62,737) $(609,097) Other comprehensive income
Net unrealized holding gain (loss) on available-for-sale securities ... 2,040 19,805
Remeasurements of defined benefit plans ... 6,525 63,349
Total other comprehensive income (Note 11) ... 8,565 83,155 Comprehensive income ... (54,171) (525,932)
Comprehensive income attributable to:
Comprehensive income attributable to owners of the parent ... (54,541) (529,524)
Comprehensive income attributable to minority interests ... 369 3,582 See notes to consolidated financial statements.
$ ¥
¥(132,373)
781
−
781 (131,591)
(132,038) 447 ¥
